STATISTICS: ARMENIA, FY2017: claims expenses went up at a significantly higher pace than GWP

Claims expenses growth exceeded by far the GWP increasing pace in 2017, in the Armenian market. Thus, while paid claims went up by 24.9% - against 4.9% growth in 2016 -, GWP saw a y-o-y growth rate of only 6.2%, slightly improved as compared with the previous year (5%).

Thus, GWP amounted to AMD 34.9 billion (EUR 60.25 million), while total paid claims amounted to AMD 17.76 billion (EUR 30.62 million), as provided in their official reports under the standards of the Central Bank of the Republic of Armenia. According to the insurance companies' ranking, prepared by ArmInfo, all 6 insurers recorded an annual growth of claims, the biggest claims' growth rate being showed by RESO - 55.5%.

From the point of insurance classes, the biggest y-on-y growth rate of claims was recorded by public liability - 10 times increase, property - 2.6, cargo - 2.1, MTPL class had a rapid increase up to 32.7% from 3.4% in 2016, but Motor Hull had an opposite trend - declining rate to 1.2% from 6.9% in 2016. Rising trend also had: travel insurance - by 27.8%, property fire and natural disasters insurance - by 21.7%, health insurance up to 17.8% from 5% in 2016 mostly due to launch in October 2017 of compulsory medical insurance. Other classes showed annual declining trend, for example, financial risks - by 42.5%, accidents - by 20.8%.

In 2017 Armenian insurers reported in general over 203 thousand insurance events, the major part is in medical insurance - about 140 thousand events and MTPL - about 59 thousand events.

Armenian insurance market is represented by 6 companies working in 17 insurance classes. INGO Armenia has the biggest number of licensed classes - 16.

In the first nine months of 2017, the gross written premiums on the MTPL insurance segment in Armenia increased by 4.6%, to AMD 13.9 billion. By comparison, in the 3Q2016/3Q2015 period, the growth was 1.7%.

In 1H2017, Armenian insurance market increased by 5.27%, mainly due to
the implementation of several large economic projects which triggered
the significant increase in accident insurance (54.59%) and CARGO
insurance (+51.29).

A delegation of the global insurer ALLIANZ led by Antoine ISSA, Regional Director for Middle East and South Africa has recently met the Armenian Minister of finance Vardan ARAMYAN, to assess the business prospects on the local market.

In the first six months of 2016, the six active insurance companies of the Armenian market totaled AMD 16.1 billion in premium (note: based on the Central Banks financial standards), while based onIFRS standards local market totaled only AMD 15.8 billion. At the same time the indemnities paid by local insurers reached AMD 6.2 billion, according to ArmInfo News Agency.

Starting September 1st, 2016, car owners will no longer be required to declare the names of other drivers they allow to drive the vehicles upon buying MTPL insurance, recently said the Bureau of Motor Insurers of Armenia(source: ArmInfo).

VTB Bank (Armenia) and the Armenian subsidiary of Rosgosstrakh have launched a co-branded, 'exclusive' product consisting in a loan granted by the bank specifically for the purchase of mandatory motor car and CASCO insurance policies provided by Rosgosstrakh Armenia, the bank's press service said in a press release.

Among the decisions adopted by the Romanian Financial Supervisory Authority (FSA) Board at its meeting on 7 March 2018, the appointment of Cosmin ANGHELUTA for a new mandate as Deputy General Manager of Gothaer Asigurari Reasigurari was also validated.

The 7th EIOPA Annual Conference takes place today in Frankfurt am Main, Germany. A review of the current supervisory covergence issues and of the prospects of the Pan European Personal Pension Product are on the event's agenda, together with analyzing the ways in which regulation may enable innovation.

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Central and Eastern Europe insurance markets are an important source of business for Lloyds, total premium income from this region increasing by EUR 64 million since 2010, pointed out the Lloyd's representative in a seminar dedicated to CEE insurance markets: "We are seeing strong growth from Czech Rep, Poland, Slovakia and Ukraine. At the same time are some contractions from Russia, Bulgaria, Romania and Hungary due to challenging trading conditions as political implications and other sanctions".

Asian insurance market, especially the Indian market - are considered to be "the new El-Dorado" of the global re/insurance market, with rapidly expanding markets and an dynamic environment: "Indian P&C re/insurance markets are expected to grow at a pace of 15% per annum", according to Victor PEIGNET, CEO, Global P&C, SCOR SE. The French -based reinsurer setted-up its Indian branch in 2016, after the authorisation from the local market authority - IRDAI. India's re/insurance market has become more attractive for global companies following the relaxation of regulatory requirements, and lately, "big names" in the industry entered the market by opening branches: GEN Re, SCOR, Lloyd's of London, MUNICH Re, SWISS Re, Reinsurance Group of America (RGA), HANNOVER Re, XL Catlin and others.